Japanese investment applications in Thailand saw a significant surge of 146% in 2025, reaching 119 billion baht, signalling growing optimism among Japanese businesses for Thailand’s economic rebound in the first half of 2026.
This positive outlook is supported by a JETRO Bangkok survey, which found that Japanese companies expect improved economic conditions compared to the previous six quarters, attributing this to a recovery in production and consumption and new business opportunities across various sectors. The Board of Investment (BOI) highlights Thailand’s continued importance as a long-term investment base for Japanese firms, with investments increasingly shifting towards high-tech and sustainable industries.
Key information from the JETRO survey and BOI data includes:
Japanese Investment in 2025:
- Total Investment Value: Exceeded 119 billion baht, a 146% increase from 2024.
- Number of Projects: 311, up 17% year-on-year.
- Major Driving Sectors:
- Automotive and Parts: 28.332 billion baht (+57%), including expansion into Hybrid Electric Vehicles (HEVs).
- Electronics and Electrical Appliances: 24.318 billion baht (+121%), focusing on advanced components for EVs and high-precision electronics.
- Digital: Rose sharply to over 7.6 billion baht (from 42 million baht in 2024), driven by large data-centre projects supporting the digital economy and AI.
- Other Notable Investments: Aircraft parts, high-grade steel, food and beverages, renewable energy, and joint ventures for industrial estate development.
Japanese Business Sentiment (JETRO Survey conducted Nov-Dec 2025 among 520+ firms):
- Optimistic Outlook for H1 2026: Attributed to recovery in production and consumption, alongside new business opportunities.
- Sectors Expected to Improve: Automotive, electronics, chemicals, food, trading, and financial services.
- Future Investment Plans:
- 23% plan to increase investment in Thailand in 2026.
- 35% expect exports to rise.
- 26% are considering establishing a regional office in Thailand.
Response to External Risks:
- US Reciprocal Tariffs: 44% of firms were unaffected, while 26% reported or anticipated impacts. Most (54%) planned to maintain existing strategies, with others considering cost pass-through, market expansion, or operational efficiency improvements.
- Thai-Cambodian Border Checkpoint Closures: Over 67% reported no significant impact, though 25% faced logistics and production disruptions, leading to shifts to sea freight or rerouting via Laos and Vietnam.
Areas for Improvement in Thailand’s Investment Climate (as desired by investors):
- Stimulating domestic consumption.
- Addressing household debt.
- Improving tax audit and refund efficiency.
- Upgrading transport infrastructure.
- Broader economic stimulus and infrastructure investment to strengthen long-term competitiveness.
Overall, Japanese investors maintain confidence in Thailand as a key production base in ASEAN, with a strategic shift towards new technologies such as hybrids, semiconductors, PCBs, aircraft parts, biotech products, data centres, and renewable energy, reinforcing Thailand’s role in global supply chains.
